Sainsbury’s profits down 18%

Sainsbury’s has reported a fall in its half-year profits. The supermarket giant has stated that this was due to a ”particularly challenging market.”

The company’s group sales were down 2% to £13.6bn for the 28 weeks leading up to 26 September. Retail sales were also down 0.1% excluding fuel.

While the figures appear worrying they are better than the 24% drop some analysts had anticipated.

Stiff competition from budget supermarkets such as Aldi and Lidl have meant that the supermarket’s sales have been sliding for some time.

Sainsbury’s boss Mike Coupe stated that “The grocery retail marketplace remains challenging but Sainsbury’s is a great business, run by an experienced management team, supported by talented colleagues and strong values. I am confident we are making progress and we are looking forward to a successful Christmas, offering our customers fantastic products and great value.”